Stimulus Checks Arrive: Is Bitcoin Set to Hit Another Record High?

US retail traders are gearing up to put billions of dollars into the bitcoin market when stimulus payments begin entering bank accounts later this week, adding more speed to a trading frenzy that swept the cryptocurrency industry last year.
Small investors are likely to buy almost $40 billion worth of bitcoin and rival cryptocurrencies when the payments, part of US President Joe Biden’s $1.9 trillion spending package, gets transferred in coming days, according to a survey conducted by Mizuho Financial Group, a Japan-based banking firm.
The Mizuho analysts, led by Dan Dolev, surveyed 235 people with a maximum income of $150,000 or less, with 40 percent responding that they would utilize a portion of their stimulus money to invest in bitcoin or stocks. Mizuho noted that that would roughly bring about $40 billion into the cryptocurrency market, out of the total $380 billion in stimulus checks.
The survey also concluded that most retail investors would rather put money in bitcoin than in stocks. The cryptocurrency attracted 61 percent yay votes versus 39 percent for equities, raising its likelihood to swell its market capitalization by an additional 2-3 percent.
More Funds Incoming
The coming deluge in the Bitcoin market underscores the large role retail investors — stuck at home due to coronavirus lockdowns with spare time and cash — can play, armed with free trading platforms.
Their presence has ensured that even the most bearish stock like GameStop rallies by hundreds of percent in a single day. Similarly, an almost useless token like Dogecoin gets to beat some of the most …
Story continues on Bitcoinist

Related posts

Bitcoin Struggles At $56K: Cardano (ADA) Back To Top 3 (Market Watch)

Bitcoin has regained more than $3,000 since yesterday’s low but continues to struggle at $56,000. The altcoin market has also bounced off from the recent losses, led by a 24% surge for Cardano – as a result, ADA has become…

Retail traders buying more Bitcoin than institutions: JPMorgan

Retail traders have been buying large amounts of BTC through PayPal and Square. According to research by strategists at leading U.S investment bank, JPMorgan Chase, retail traders are flocking to buy Bitcoin from mainstream fintech firms.JPMorgan’s data suggests that retail…
BitcoinBitcoin.combridgewater associatesCryptocurrenciesEconomicsInflationteslaTreasury BondsU.S stimulusu.s. congressU.S. Federal Reserve

Hedge Fund Manager Says Sell-off in US Treasury Bonds a Threat to ‘High-Flying Assets’ Like BTC

Hedge fund manager Bob Prince has warned that the recent sell-off in the U.S. government bond market could accelerate and this could “threaten high-flying assets” like cryptocurrencies and blank cheque companies. Prince, who is the co-CIO at Bridgewater Associates, links…